Company anticipates soft U.S. market for remainder of 2008 and into
2009

Emerging markets beginning to show impact of credit crisis

General Motors today announced its financial results for the third quarter of 2008,
reflecting rapidly deteriorating market conditions in the U.S., slowdowns
in other mature markets around the world, and continued losses at GMAC
Financial Services (GMAC).

During the third quarter the turmoil in the global credit markets
resulted in the worst financial crisis in more than 70 years. The upheaval
has had a dramatic impact on the auto business in particular, especially in
the U.S. and Western Europe.

Tight credit, rising unemployment, declining income, falling stock
markets, and continuing deterioration in the housing market in the U.S.,
resulted in an abrupt halt in consumer spending, with most consumers
exiting the vehicle market. Many of those still intending to purchase
vehicles were denied financing, or found the cost of financing
prohibitive.

"The third quarter was especially challenging for the auto industry.
Consumer spending, which represents close to 70 percent of the U.S.
economy, fell dramatically, and the abrupt closure of credit markets
created a downward spiral in vehicle sales," said Rick Wagoner, Chairman
and Chief Executive Officer. "The U.S. government's actions to help
stabilize the credit markets and eventually ease the credit crunch are an
essential first step to the economy's and the auto industry's recovery, but
further strong action is required."

GM reported a net loss of $2.5 billion or $4.45 per share for the third
quarter, including special items. That compares with a net loss from
continuing operations of $42.5 billion or $75.12 per share in the third
quarter of 2007, which included a non-cash charge of $38.3 billion to
establish a valuation allowance against some of the company's net deferred
tax assets.

On an adjusted basis, GM posted a net loss of $4.2 billion or $7.35 per
share, compared with a net loss from continuing operations of $1.6 billion
or $2.86 per share in the same period last year.

Revenue for the third quarter was $37.9 billion, down from $43.7 billion
in the year-ago quarter, reflecting dramatic sales declines across the
industry driven by unstable market conditions, instability in the credit
markets and dramatic retraction in consumer demand, especially in North
America and Europe.

GM recorded net favorable charges of $1.7 billion for special items in
the third quarter. Included in the charges was a curtailment gain of $4.9
billion resulting from the UAW Settlement Agreement becoming effective.
The curtailment represents the accelerated recognition of net prior service
credits, largely relating to the 2005 GM UAW healthcare agreement,
scheduled for amortization after January 1, 2010.

The curtailment was recorded because GM's UAW retiree health plan will
not exist after January 1, 2010, and therefore no further basis for
deferring unamortized prior service credits exists beyond that date. The
$4.9 billion curtailment gain was partially offset by a non-cash $1.7
billion settlement charge related to the elimination of post-65 salaried
retiree healthcare coverage, including the cost of increased pension
benefits that were announced in July as part of GM's operating actions to
improve liquidity as well as the recognition of accumulated deferred losses
related to the healthcare plan.

In addition, GM reported charges of $652 million relating to its
commitments as part of Delphi's bankruptcy proceedings, $251 million for
impairment of investments in GMAC, and $641 million in
restructuring-related and other charges. Details on these and all other
special items are in the financial highlights section of this release.

GM Automotive Operations

GM reports its automotive operations and regional results on an
earnings- before-tax basis, with taxes reported on a total corporate
basis.

GM recorded an adjusted automotive loss of $2.8 billion ($947 million
reported loss) in the third quarter 2008. The loss compares with adjusted
automotive earnings from continuing operations of $98 million in the third
quarter of 2007 (reported net loss of $1.6 billion).

The results reflect losses in GM North America (GMNA) driven largely by
the U.S. industry volume decline of nearly 20 percent, and shifts in
product mix. In addition, Europe saw rapid auto market contraction,
leading to sharply lower GM Europe (GME) sales volume in the third quarter.
GM Asia Pacific (GMAP) results were down due to commodity hedging charges
and moderating demand in key markets including China, Australia and India.
These losses were partially offset by very strong results in the GM Latin
America, Africa and Middle East (GMLAAM) region. GM's automotive results in
the third quarter include $1.5 billion of expenses related to
mark-to-market changes in the value of GM's commodity and foreign exchange
hedging contracts, due almost entirely to falling commodity prices.

GM sold 2.1 million vehicles worldwide in the third quarter, down 11
percent year over year. Sales in GMNA were down 19 percent compared to
third quarter 2007. GM global market share was 13 percent, down 0.7
percentage points compared with the third quarter of 2007, due largely to
weakness in North America and Western Europe.

GMNA revenue and earnings in the third quarter reflect dramatic industry
deterioration and a sharp fall in consumer spending driven by the weak U.S.
economy and a very harsh credit environment. Earnings were impacted by
lower volumes, rapid shifts among U.S. consumers away from trucks and SUVs
toward smaller cars, and unfavorable mark-to-market adjustments on
commodity hedging.

GME revenue was down 15 percent in the third quarter amid industry-wide
volume declines ranging from 10 to 35 percent in certain major markets
including the U.K., Spain and Italy. Overall GME sales volume was down
12.3 percent year over year, while up 10 percent in Eastern Europe.
Earnings were largely impacted by the lower volumes, and unfavorable mix
and negative pricing. In addition, unfavorable foreign exchange relating
to the weakening of the British pound and the mark-to-market of commodity
hedges negatively impacted earnings. Results were partially offset by
favorable structural cost performance.

Results in GMAP were impacted primarily by unfavorable mix and negative
pricing. In addition, GMAP results were impacted by unfavorable hedging,
which was largely offset by the favorable foreign exchange impact of
exports.

Industry sales for the region were down by 134,000 units or 2.7 percent
in the third quarter. Despite the slowdown, GM reported a 2.6 percent
increase in sales volume, and modest gain in market share. Markets in the
GMAP region are expected to remain soft through the fourth quarter, with
further slow downs anticipated in Australia, China, South Korea and India
as the contagion of the faltering U.S. economy and tightening credit
conditions expand to other regions around the world.

GMLAAM saw double-digit revenue growth, up 15 percent, and earnings, up
37 percent, in the third quarter, fueled by strong demand for Chevrolet and
Cadillac products. GMLAAM sales volume was up more than 3 percent compared
to the same period last year. Sales were especially strong in key South
America markets, including Brazil, Chile, Ecuador and Peru, each setting
all-time GM quarterly sales records. The region is on track for another
year of record sales, although the effects of the global economic slowdown
on credit availability and consumer behavior are likely to result in some
moderation of demand in the fourth quarter.

GMAC

On a standalone basis, GMAC reported a net loss of $2.5 billion for the
third quarter 2008, down $900 million from the year-ago quarter. GM
reported an adjusted loss of $1.2 billion for the quarter attributable to
GMAC, as a result of its 49 percent equity interest.

GMAC's automotive finance operation experienced pressure from lower used
vehicle prices and weaker consumer and dealer credit performance. GMAC's
ResCap operations reported further losses as a result of adverse market
conditions, which drove high credit-related provisions and weak revenue.
GMAC's Insurance business remained profitable.

Cash and Liquidity

Cash, marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association (VEBA) trust totaled $16.2
billion on September 30, 2008, down from $21.0 billion on June 30,
2008.

The change in liquidity reflects negative adjusted operating cash flow
of $6.9 billion in the third quarter 2008, driven by the industry-wide
slowdown in vehicle demand and compounding credit crisis, especially in
North America and Europe. During the quarter, GM drew the remaining $3.5
billion of its secured revolving credit facility and made $1.2 billion in
payments to Delphi as required by agreements between the companies as part
of Delphi's bankruptcy proceedings.

GM expects adjusted operating cash flow in the fourth quarter to be much
improved versus the third quarter, and more consistent with the first half
of the year. Improvements in fourth quarter cash flow are largely driven
by anticipated improvements in working capital in North America relating to
sales allowances, and lower fourth quarter finished vehicle inventory in
Europe.

Improving its liquidity position remains a top priority for the company.
In response to deteriorating market conditions, GM announced today that in
addition to the $15 billion in liquidity initiatives it outlined in July
2008, it has identified $5 billion of incremental liquidity actions.
Cumulatively, GM has announced actions aimed at improving liquidity by $20
billion through 2009. To date, $10 billion in internal operating actions
have either already been completed or are on track for full execution by
the end of 2009.

Even if GM implements the planned operating actions that are
substantially within its control, GM's estimated liquidity during the
remainder of 2008 will approach the minimum amount necessary to operate its
business. Looking into the first two quarters of 2009, even with its
planned actions, the company's estimated liquidity will fall significantly
short of that amount unless economic and automotive industry conditions
significantly improve, it receives substantial proceeds from asset sales,
takes more aggressive working capital initiatives, gains access to capital
markets and other private sources of funding, receives government funding
under one or more current or future programs, or some combination of the
foregoing. The success of GM's plans necessarily depends on other factors,
including global economic conditions and the level of automotive sales,
particularly in the United States and Western Europe.

Further detail on the additional liquidity actions and GM's current
liquidity position and outlook will be disclosed in a Form 8-K filing with
the Securities and Exchange (SEC) later today.